We explore the effect of director social capital, directors with large and influential networks, on credit ratings. Using a sample of 11,172 firm-year observations from 1999 to 2011, we find that larger board networks are associated with higher credit ratings than both firm financial data and...

We examine the effects of busy directors on merger premiums and conclude that busy directors are not uniformly detrimental. We provide evidence that busy CEOs of acquirer firms are associated with lower premiums suggesting they do not shirk their responsibilities. Busy CEOs of target firms...

We explore the impact of director social capital on credit ratings. Social capital is often associated with trust and cultivated through one's personal networks. We show that firms which employ well-connected directors benefit with a higher credit rating. This result is amplified for firms that...

We investigate how board busyness affects corporate payout policies. We find that board busyness increases the propensity and the level of cash distribution to shareholders. The likelihood and the level of share repurchases increase with inside director busyness, while the propensity to pay...